Should I pay my HELP debt (HECS debt) in 2023?

Рет қаралды 5,879

Жыл бұрын

How do government student loans (called HELP debts, HECS debts, training and support loans (TSL)) work in Australia?
And is it worth paying extra or early repayments, over and above the minimum government loan repayment? It could well be the case, but it depends on your situation.
Link to the spreadsheet I refer to in the video:
beyondaccountancy.com.au/wp-c...

Пікірлер: 24

@cris__ Жыл бұрын

Very clear, thank you

@zDoMinaTe Жыл бұрын

Thank you so much, this saved me so much time 🤝

@patrickwright3901 Жыл бұрын

Great video Jarrod!

@divyank4u Жыл бұрын

Explained in a very good way. Thank you

@alisontyrrell5227 Жыл бұрын

This was very helpful, thank you

@BeyondAccountancy Жыл бұрын

Thanks. Let me know if there are other tax/finance topics you think would be interesting

@computer-training-for-seniors 10 ай бұрын

The 2023 indexation was $7.1%.

@MomenKaziVideos Жыл бұрын

Hi I got a quick question from your video. The ATO website mentions (as you cited in the video) that "Indexation is applied to the part of an accumulated study and training loan that has remained unpaid for more than 11 months". I just begun first year university this year (2023), so by this definition does that mean my loan from Semester 1 of university is not indexed this year because the debt was unpaid for less than 11 months? Clarification regarding this is much appreciated, thanks.

@BeyondAccountancy Жыл бұрын

You are correct. You'll see exactly how much is added for indexation by viewing your HELP debt account on MyGov. It sounds like indexation won't apply to you until 1 Jun 2024.

@danc.5509 Жыл бұрын

The other issue is whether a person with a HELP/HECS debt wants to work overseas. The government will continue to expect a tax return be completed while away from Australia until paid off

@BeyondAccountancy Жыл бұрын

You're correct. People find this really annoying. Before the rules changed, you could earn as much as you liked overseas and not have to pay any HELP debt. For a lot of expats, the only need to lodge due to HELP debt.

@aimesandri4592 6 ай бұрын

Great video! Have you got an updated spreadsheet for 2024?

@BeyondAccountancy 5 ай бұрын

Hi Aime. Not yet. I plan to release a 2024 version of this video once the 2024 indexation amount is known.

@aimesandri4592 5 ай бұрын

@@BeyondAccountancy that makes sense! Thanks for providing great content that is updated!

@llai8501 5 ай бұрын

Thank you @@BeyondAccountancy have subscribed and will look out for the 2024 version.

@chrisziersch5552 Жыл бұрын

Is there an advantage to partially paying down the HELP debt ie does it reduce indexation on the amount paid down?

@BeyondAccountancy Жыл бұрын

Yes, that's exactly the advantage. If you're still thinking of doing it for 2023, you'll need to be really quick as tomorrow is the cut off. BPay won't clear in time, so use another method like direct credit: www.ato.gov.au/General/Paying-the-ATO/How-to-pay/Other-payment-options/#Directcredit

@chrisziersch5552 Жыл бұрын

Just got it in time using bank transfer! Made the transfer on 30 May at about 10:30pm so thought I’d probably miss out. On 1 June an indexation debit appeared on the account. But then on 2 June the indexation was reversed and the payment appeared with Processed date 1 Jun 2023, Effective date 31 May 2023. Thanks! 😃😃😃 (and I confirm that indexation only occurred on the portion of outstanding debt older than 11 months)

@jenkinsdale5 3 ай бұрын

I'd be interested in trying to understand how if you made voluntary Post tax additions to your super fund and then used the tax back to pay down hecs and effectively generate a 30% increase in your spending power.

@BeyondAccountancy 3 ай бұрын

Hi Dale. Can you elaborate on that and email me at jarrod.rogers (at) beyondaccountancy.com.au and I'll try to reply later in the week?

@teeu.4493 11 ай бұрын

Can you make contributions pre-tax contributions (i.e. through your employer) or does it have to come from your net-pay?

@BeyondAccountancy 11 ай бұрын

Great question. Net pay (post-tax) only. As such, I'd save up the money and pay it all in mid-May so you can earn interest in the meantime. There is no additional saving by paying HELP debt any time before mid-May. Hope that helps.

@teeu.4493 11 ай бұрын

@@BeyondAccountancy thank you!!